Telefonica downgraded to Sell from Hold at Deutsche Bank

Deutsche Bank downgraded Telefonica to Sell from Hold with a price target of EUR 3.20, down from EUR 4.30. The analyst says recent stake building has “caused a divergence” between the share price and the company’s underlying fundamental. Telefonica is now one of the most expensive stocks in the sector and this premium grows over time as others benefit from superior free cash flow growth, the analyst tells investors in a research note. The firm adds that its r detailed work on Spain highlights “continued structural drags.”